A firm has a beta of 1.3 and a debt-to-equity ratio of .4.The market rate of return is 11.6 percent,the tax rate is 32 percent,and the risk-free rate is 3.3 percent.The pretax cost of debt is 7.2 percent.What is the firm's WACC?
A) 11.46%
B) 8.90%
C) 10.41%
D) 9.96%
E) 12.12%
Correct Answer:
Verified
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